3 Benefits Of Debt Settlement
The phone keeps ringing but youre unwilling to pick up
. Theres someone at the door but you dont want to open. Nervous to check your mailbox for it may be another legal notice. A debt is a burden that no one wants to carry, yet it remains on your shoulder disturbing your mental peace. The only way out is to opt for debt settlement. It is system of debt negotiation between the creditor and the debtor so that both parties get what they want. But mostly, it is a win-win situation for the debtor.
Regain your mental peace
Thered be no more pestering phone calls from the creditor or the debt collection agency or no more legal notices to sue you for insolvency. Once the debt settlement is reached youd be free from any and every burden that you were carrying till now. The easier terms of settlement would also add to your comfort. Moreover, youd regain the self esteem you had for yourself in your own eyes and would be able to continue to live with pride.
Enjoy overall monetary benefits
While negotiating for a debt settlement, it is the debtor who stands to gain more than the creditor. If your settlement agency is good in what it does, it can bargain and bring down the amount to even 40-50% less than what you actually needed to pay. Amazing, isnt it? But it is a fact, that while the debtor wants to get rid of a burden, the creditor also looks forward to one less bad debt on their balance sheet and settles for whatever they get. Hence, you actually save money and save your reputation.
Get back your positive Debt Rating
It is a very crucial point while a debt negotiation that as the debt are settled; the creditor clears all the negative debt records of the debtor from their books. This is of a great importance because as this is done, the debtor can again apply for a loan from any other creditor after this. Unlike before, there would be no red flags shown against his / her name. A clear record is also beneficial for proper functioning in the society because a negative debt rating is as bad as a criminal offence.
So, as you can see when you opt for a debt settlement, at the end of the day it is you who takes home much more moolah than the creditor. Besides saving money you save a lot that was at stake. Intangibles like peace of mind, reputation and confidence that you were on the verge of loosing, come back to you just like the old times. In a way, a debt settled, is a life settled!
by: Natalia Kobseva
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